The gold skid may be over.
After finding double bottom support around $1,680 in late March, gold is back to $1,838. From here, if it can break above resistance, we could see a near-term test of $1,900.
From there, even $2,500 gold is possible.
After all, the same catalysts that pushed it to about $2,089.20 in August 2020 are still in place. According to Granite Shares founder and CEO Will Rhind, as quoted by CNBC:
“The conditions that drove gold to an all-time high in 2020 are very much still in place. I think it’s just natural that once you get to an all-time high in an asset class, there’s some consolidation afterward, and that’s what we’re seeing right now in terms of the price. But the fundamental conditions are still here.”
With the Federal Reserve keeping interest rates near zero, it could weaken the U.S. dollar even more, and send gold screaming even higher. That, and investors have grown increasingly concerned that inflation is already overheating, which could send even more investors to the safe havens of gold, near-term.
“The question is: because of rising inflation, will the Federal Reserve’s hands be forced to raise interest rates sooner than expected,” said Robin Bhar, an independent market analyst, as quoted by Kitco.com. “Although inflation is rising, because of the economic data we have seen, I think the Fed has room to be patient and that will support gold. As economies reopen, it is justified that inflation pushes higher, but the economic data is still uneven.”
Some of the top ways to trade potential upside in gold is with:
- Kirkland Lake Gold Ltd. (KL)
- Barrick Gold Corp. (GOLD)
- Newmont Corporation (NEM)
- Global X Gold Explorers ETF (GOEX)
- VanEck Vectors Gold Miners ETF (GDX)